Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Debenture Application A/c is which type of account?
Options:
Current Account
Nominal Account
Personal Account
Real Account
Correct Answer:
Personal Account
Explanation:
Debenture A/c is a Personal A/c as it reflects the liability of the company towards debenture holders. Personal accounts represent individuals, organizations, or entities with whom the company has financial relationships. These accounts record transactions related to entities outside the company.